Debt & Your Happiness

At some point in the majority of people’s lives, they have been in debt. Whether it is student loan debt for getting an education or falling into a credit trap, you are not alone. The average person in the UK has an average of £8,000 of debt.

We all walk a tightrope of finances. It takes one minor setback to create a snowball effect. One thing leads to another and the next thing you know you are robbing peter to pay paul. It’s not the best position to be in. I have good news, you can become debt free again – it may take a bit of work, but you can do it. Here are some tips to assist:

Go through your budget.

It is important to work out what available surplus you have. Start with your income. How much do you earn if you are employed? Or total up your benefits. Next up, the expenditure. Start with the essentials such as your rent/mortgage, gas, etc. List all your direct debits you have coming out. Do not include payments going out to your creditors. Once you have done all of this, look at how much you have left over. If you are running at a deficit, look at your expenditure to see if you can cut back. For example, can you shop in cheaper places? Any charities or subscriptions you can cancel?

Maximise your income.

Are you entitled to any benefits? Is there any overtime at work? Or do you have a few hours spare to do additional work? It is always worth a look to see if there is any additional support you can get.

Can you consolidate your debts?

Have you investigated a debt consolidation loan? There are companies out there who can help. Sometimes you may need a guarantor, but it is always worth looking. Lending companies will look at your budget to ensure your planned payments to them are affordable and suited to your needs.

Seek help from a professional.

There are many companies in the UK who have trained debt advisors, such as Citizens Advice, Stepchange, Payplan, and Money Advice. These companies are trained and qualified to give a range of debt advice and options for you to take into consideration.

What options are there?

There are options such as a debt management plan, informal arrangement, individual voluntary arrangement, debt relief order, and bankruptcy. If you are in Scotland, there is a trust deed.

The above are basic pointers on what you need to consider. Please do not mistaken this as I am not a debt advisor, but I understand circumstances to offer some food for thought to the people who may need it.

Remember you are never alone in these circumstances. Be mindful of your health. Being in debt, you may feel like there is nobody to talk to. Do not let yourself feel isolated. Open up to your loved ones and try talking about it. As they always say, a problem shared is a problem halved. If you feel you cannot, there is always support out there. I have found the website Mind is incredible when you are struggling. If you feel like there is nobody to talk to or you can’t handle it any more, look and give them a call. They also do a live chat service which, for some people who are anxious to talk over the phone, could be helpful.

If you feel like you are struggling with everything, remember the Samaritans. The free phone number 116 123. They are open 24/7, 365 days a year. You are never alone. Sometimes you need to give yourself a little hand before completing a task. I hope this article has been helpful to you guys.